JUST IN: New York Attorney General Schneiderman launches inquiry into #cryptocurrency exchanges

[Wwcd]

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Info here:
https://www.longisland.com/news/04-17-18/ag-schneiderman-launches-inquiry-into-cryptocurrency-exchanges.html

New York, NY - April 17, 2018 - Today, New York Attorney General Eric T. Schneiderman launched the Virtual Markets Integrity Initiative, a fact-finding inquiry into the policies and practices of platforms used by consumers to trade virtual or “crypto” currencies like bitcoin and ether.

As part of a broader effort to protect cryptocurrency investors and consumers, the Attorney General’s office sent letters to thirteen major virtual currency trading platforms requesting key information on their operations, internal controls, and safeguards to protect customer assets.

As the letters explain, the Initiative seeks to increase transparency and accountability as it relates to the platforms retail investors rely on to trade virtual currency, and better inform enforcement agencies, investors, and consumers.

“With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money.
Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms,” said Attorney General Schneiderman. “Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve.”

Virtual or “crypto” currency trading platforms match buyers and sellers of virtual currencies. Sometimes referred to as “exchanges,” these platforms are a key point of entry into the virtual currency market for professional and retail investors alike.
They serve as repositories for sensitive personal information and custodians of vast sums of virtual and government-issued (or “fiat”) currency.

Ensuring that enforcement agencies, investors, and consumers have the information they need to understand the practices and the risks on these platforms is critical, given reports of the theft of vast sums of virtual currency from customer accounts, sudden and poorly explained trading outages, possible market manipulation, and difficulties when withdrawing funds from accounts.
Often, the platforms lack the basic market protections of traditional investing platforms.

Moreover, the extent of disclosures to customers about trading rules, internal controls, and other basic practices varies from platform-to-platform, making it difficult or impossible for prospective users to evaluate the actual risks of trading on a particular platform.

The Initiative stems from the Attorney General’s duty to protect consumers and ensure the fairness and integrity of the financial markets.

Before trading on a new platform, sophisticated investors routinely demand robust disclosures, allowing them to assess the platform’s operations and the adequacy of its policies and internal controls.

The questionnaire delivered to the virtual currency platforms asks for similar information so that average investors can better understand the risks and protections.

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[triron]

1. Interesting development apparently unrelated to Cohen though.

[Scurrilous]

2. This exchange went well...

Bitcoin deal gone bad lands man with bullet wound and felony charge

<snip>

"A shooting in downtown Miami that left one man badly injured and under arrest was a Bitcoin deal gone bad, police said.

The blown-up business deal last week, according to police, involved two men — Ryan Rice and an unidentified companion — who started the day in Gainesville with $30,000 cash and a plan to turn it into $35,000 worth of Bitcoin.

Rice told police he was concerned about his safety because of the large amount of cash involved. That premonition proved prophetic, police said.

Shortly after the pair met up at a Whole Foods with the Bitcoin dealer, whom police have not identified, the transaction turned violent. A fourth man, Marcarrous Clark, rushed them in a parking garage and a struggle erupted for the cash. Rice, police say, shot Clark but he has not been charged. Police are treating the shooting as self-defense though the investigation is ongoing."

http://www.miamiherald.com/news/local/crime/article208997064.html

[Wwcd]

3. YeeeHaaa! Ya I'd say Schneiderman is doing what needs to be done in the lawless business of bitcoin

Its known as a source of money laundering & a method used by Putin to get around sanctions designed for "MONEY".
Since bitcoin is not yet considered "MONEY", by necessary sanction description.

He's such a sleazy crook. Explains why his International Crime Syndicate finds bitcoin so attractive.

[DinahMoeHum]

4. I looked at the list of platforms being investigated. . .

. . .and they smell like fly-by-night outfits to me.

AFAIK, there should be few if any issues if you invest/trade through
CBOE (Chicago Board Options Exchange now known as CBOE Global Markets)
or
CME (Chicago Mercantile Exchange, now known as CME Group Inc.)

Both outfits offer Bitcoin futures and they use well-vetted traditional investing/trading platforms for Bitcoin and other commodities. Options are not yet available at this time.

Like other commodity futures, there are considerable risks involved, so tread carefully.